Yahoo Finance Amcor (AMCR) Steps Up Investment in ePac Flexible Packaging
Amcor plc AMCR has announced that it is increasing its investment in ePac Flexible Packaging by $45 million, thereby raising its minority stake in the latter. This investment complements AMCR's existing digital activities. It is in sync with its objective to team up with high-growth, visionary companies that provide opportunities for innovations, making packaging more sustainable while generating strong returns for its shareholders.
Amcor had made its initial investment in ePac last April, its first corporate venture-type investment. ePac was founded in 2016 with a mission to help the locally-based consumer packaged goods companies compete with large brands through great packaging.
ePac has rapidly scaled up its business over the years, generating annual revenues of around $100 million, and has a fast-growing international footprint. Via its 25 sites, ePac caters to the needs of small and medium-sized consumer goods customers with a unique, digitally-enabled and scalable business model.
Per management, ePac's focused and innovative business model centered around deploying a very high level of digitalization and customization, warranting a higher investment. ePac's proven digital technologies facilitate exceptional service levels while cutting down on lead times considerably.
In April 2022, Amcor announced its ground-breaking Lift-Off initiative to offer seed funding to innovative start-ups that are focused on novel packaging solutions and to coordinate for creating more sustainable packaging solutions, new packaging technologies or developing a new business model.
Recently, AMCR announced that it chose to invest in Bloom Biorenewables Ltd and Nfinite Nanotechnology. Biorenewables Ltd is a chemical and biomaterials company, converting plant waste into chemicals used in packaging, while Nfinite Nanotechnology is an advanced materials company, leveraging smart nanocoatings to make packaging recyclable and compostable.
Earlier in January 2022, Amcor had announced a strategic investment in PragmatIC Semiconductor, a world leader in ultra, low-cost electronics. PragmatIC Semiconductor develops flexible, integrated circuits beyond the scope of conventional electronics. PragmatIC’s ConnectIC family of radio frequency identification and near-field communications integrated chips can be embedded into packaging to store and relay information to devices, such as smartphones. This technology will enable smart packaging applications across the entire product lifecycle from manufacturing and supply-chain management to consumer engagement and even material recovery.
Backed by its strong balance sheet and an annual free cash flow in excess of $1 billion, Amcor continues to invest in growth, and expand capacity in higher-value segments and higher-growth markets.
AMCR is constantly striving to get an edge over its competitors and meet ever-evolving consumer needs through innovation. Amcor invests around $100 million annually in R&D. Consumers’ increasing demand for more sustainable packaged products represents a major growth opportunity. Amcor committed all its packaging to be recyclable or reusable by 2025.
Price Performance
Image Source: Zacks Investment Research
In the past six months, shares of Amcor have gained 4.4% against the industry’s decline of 1.0%.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are RBC Bearings ROLL, W.W. Grainger GWW and Greif GEF. While ROLL and GWW flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RBC Bearings has an expected earnings growth rate of 77% for fiscal 2023. The Zacks Consensus Estimate for the current fiscal-year earnings has moved up 22% in the past 60 days.
RBC Bearings has a trailing four-quarter earnings surprise of 9.4%, on average. ROLL’s shares have increased 20% in the past six months.
Grainger has an estimated earnings growth rate of 41.5% for the current fiscal year. In the past 60 days, the Zacks Consensus Estimate for current fiscal-year earnings has been revised 7% upward.
Grainger pulled off a trailing four-quarter earnings surprise of 7.9%, on average. GEF’s shares have gained 10% in the past six months.
Greif has an estimated earnings growth rate of 43% for the current fiscal year. In the past 60 days, the Zacks Consensus Estimate for current fiscal-year earnings has gone up 5%.
Greif has a trailing four-quarter earnings surprise of 22.4%, on average. GEF’s shares have gained 11% over the past six months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Greif, Inc. (GEF) : Free Stock Analysis Report
RBC Bearings Incorporated (ROLL) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
